The second quarter showed continued positive trends in the Grand Rapids office market. Total vacancy fell to 10.0 percent as nearly 190,000 square feet of space has been absorbed so far in 2018. Rent growth has slowed this year with current average asking rents coming in at $18.02.

1. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2018
Grand Rapids
Office Insight
The second quarter showed continued positive trends in the Grand Rapids
office market. Total vacancy fell to 10.0 percent as nearly 190,000 square feet
of space has been absorbed so far in 2018. Rent growth has slowed this year
with current average asking rents coming in at $18.02. There was a fair share
of leasing activity in the second quarter, with some deals of note including
BDO taking 35,000 square feet at 5300 Patterson Ave SE for their IT operations,
and Cognex signing a 7,000-square-foot lease at 665 Seward Ave NW.
The East Paris corridor and West Side of downtown remain hot submarkets.
Parking continues to be a significant obstacle downtown, which has led some
tenants to consider a move to the suburbs where parking is free and more
accessible. There are a handful of sublease availabilities downtown, and
office product for sale is virtually nonexistent. On the development front, the
614 First Street development is nearing completion, and renovations are well
underway at 37 Ottawa, where they are looking to secure their first tenants.
The Studio Park development downtown has begun site work; however, they
will not break ground on the office component until a tenant is secured.
Outlook
Looking ahead to the rest of the year, we can expect to see more of the same;
healthy leasing activity, compressed vacancies and a plateau of rent growth.
Attracting out-of-market tenants and buyers is a surefire way to maintain the
velocity. Conditions are not likely to change dramatically until new office
inventory is delivered. Downtown tenants may look to the near-
neighborhoods in an effort to save on rent and solve their parking woes.
Perhaps a private developer will take advantage of the demand and will put
up a parking deck.
Fundamentals Forecast
YTD net absorption 187,804 s.f. ▲
Under construction 174,000 s.f. ▲
Total vacancy 10.0% ▶
Average asking rent (gross) $18.02 p.s.f. ▶
Concessions Stable ▶
-200,000
0
200,000
400,000
2015 2016 2017 YTD 2018
Supply and demand (s.f.) Net absorption
Deliveries
Low vacancies continue across metro Grand Rapids
15.1% 14.8%
12.9%
10.0%
2015 2016 2017 YTD 2018
Total vacancy
$0.00
$10.00
$20.00
$30.00
2015 2016 2017 YTD 2018
Average asking rents ($/s.f.) Class A
Class B
For more information, contact: Harrison West | harrison.west@am.jll.com
• Low vacancies across the area continue, while rent growth has slowed so
far this year.
• Parking continues to be a major obstacle for downtown buildings and
tenants.
• Renovations and construction are well underway downtown, as
developers look to lock up tenants.

2. © 2018 Jones Lang LaSalle IP, Inc. All rights reserved. All information contained herein is from sources deemed reliable; however, no representation or warranty is made to the accuracy thereof.
Q2 2018
Office Statistics
Grand Rapids
For more information, contact: Harrison West | harrison.west@am.jll.com
Class
Inventory
(s.f.)
Total net
absorption
(s.f)
YTD total net
absorption
(s.f.)
YTD total net
absorption
(% of stock)
Direct
vacancy
(%)
Total
vacancy
(%)
Average
asking rent
($ p.s.f.)
YTD
completions
(s.f.)
Under
construction
(s.f.)
Downtown Totals 5,302,555 -57,776 1,544 0.0% 9.8% 10.4% $20.66 0 174,000
Northeast Totals 761,296 15,488 52,536 6.9% 3.5% 3.5% $15.07 0 0
Northwest Totals 411,996 0 0 0.0% 0.0% 7.5% $15.95 0 0
Southeast Totals 3,877,426 57,170 120,332 3.1% 10.4% 10.8% $15.52 0 0
Southwest Totals 460,720 -2,573 13,392 2.9% 10.6% 10.6% $12.63 0 0
Suburbs Totals 5,511,438 70,085 186,260 3.4% 8.7% 9.5% $15.25 0 0
Totals Totals 10,813,993 12,309 187,804 1.7% 9.3% 10.0% $18.02 0 174,000
Downtown A 1,739,199 12,172 18,975 1.1% 14.3% 14.8% $21.67 0 174,000
Northeast A 118,146 0 0 0.0% 0.0% 0.0% N/A 0 0
Southeast A 572,141 -16,959 -16,453 -2.9% 19.6% 19.6% $16.72 0 0
Southwest A 18,800 0 0 0.0% 0.0% 0.0% N/A 0 0
Suburbs A 709,087 -16,959 -16,453 -2.3% 15.8% 15.8% $16.72 0 0
Totals A 2,448,286 -4,787 2,522 0.1% 14.7% 15.1% $20.16 0 174,000
Downtown B 3,563,356 -69,948 -17,431 -0.5% 7.6% 8.3% $19.78 0 0
Northeast B 643,150 15,488 52,536 8.2% 4.2% 4.2% $15.07 0 0
Northwest B 411,996 0 0 0.0% 0.0% 7.5% $15.95 0 0
Southeast B 3,305,285 74,129 136,785 4.1% 8.8% 9.3% $15.08 0 0
Southwest B 441,920 -2,573 13,392 3.0% 11.1% 11.1% $12.63 0 0
Suburbs B 4,802,351 87,044 202,713 4.2% 7.7% 8.6% $14.85 0 0
Totals B 8,365,707 17,096 185,282 2.2% 7.7% 8.5% $16.91 0 0